Eisman will clear out his desk by June 30. Read more »
This year’s conference will not include David Tepper’s balls but the show must go on. Scheduled speakers, in order of appearance: Erez Kalir, Dinakar Singh, Jeff Aronson, Robert Howard, Phil Falcone, Jim Chanos, winner of the inaugural Ira Sohn investment contest, Steve Feinberg, Peter May, Steve Esiman, Jeff Gundlach, Marc Faber, Bill Ackman, Joel Greenblatt, Mark Hart III, David Einhorn, Eike Batista, Carl Icahn.
12:20 Speaker 1: Erez Kalir, founder and CEO of Sabretooth Capital, presenting: “Economic Death As A Special Situation”
12:21 The last time he spoke in front of this many people “was at my bar mitzvah”
12:22 You don’t have to make money the Warren Buffett way.
12:25 Holding MBIA stock is “favorably asymmetric” Read more »
The break-up was announced in October but just made official and according to the hedge fund’s co-CEO’s, they could not be more psyched. “Everyone at FrontPoint is focused on generating investment performance, and we are delighted to be moving forward as an independent entity with Morgan Stanley as our partner,” Dan Waters and Mike Kelly wrote in a letter to investors. The split “allows FrontPoint portfolio managers…to operate more independently” and hopefully means more of Steve Eisman bringing the thunder. [Reuters]
Hedge Fund Manager/Big Short Character Sues Michael Lewis, Steve Eisman For Making Him Look Like A Guy Investors Might Want To Think Twice AboutBy Bess Levin
Wing Chau, a manager of collateralized debt obligations, according to a complaint filed Feb. 25 in Manhattan federal court, claims the book unfairly casts him as one of the “villains” responsible for the 2008 financial collapse. The book “depicts Mr. Chau as someone who ignored his professional responsibilities, made misrepresentations to investors, charged money for work that was not performed, had no stake in the CDOs he managed, was incompetent or reckless in carrying out his responsibilities, and violated his fiduciary duties by putting the interests of ‘Wall Street bond trading desks’ above those of his investors,” according to the complaint…Steve Eisman is described in the complaint as “one of the principal sources Lewis relied on in writing ‘The Big Short.’” [Bloomberg]
FrontPoint Partners, the home of the delightful Steve “I will shut you down” Eisman, is expected to be hit with $500 million in redemption requests, potentially putting Morgan Stanley’s plans to spin off the hedge fund on ice. Read more »
Last Friday, hours after a report in the Wall Street Journal claimed FrontPoint’s Steve Eisman was weighing leaving the firm, Eisman put out a statement saying that by “I want to have more control over my destiny” he simply meant “I am in discussions on a structure which will provide me with greater operational flexibility and control over my own business” and that he and Eisman are two souls, one body “now.” And by now he might literally right now, this second. Next week, month, year is anyone’s guess, with sources saying Eisman “will exit before year-end.” But don’t hang those heads too low, FrontPointers. Steve did throw the firm and its investors this (sad trom)bone. Read more »
Steve Eisman To Threaten Proxy Battles Over The Phone From His Perch At FrontPoint For Years To ComeBy Bess Levin
Earlier today, it was suggested that Steve Eisman was “weighing” leaving FrontPoint Partners, after he told the Journal, “At this point in my career, I want to have more control over my destiny.” Apparently the speculation was way off base, forcing Steve-o to clarify his statement. Read more »